Aug 12, 2014  Tuesday  6 AM  PT
As outlined in our last post, US markets after completing 5 steps down in First leg down on Friday morning, have been going through a minor rally in  leg  Two up. This rally will go up in  ABC  steps- A up B down and then C up. We already completed A up yesterday  morning and  are going through B down .This will be followed by C up  soon. Then we will resume our down  trend after leg Two up  has been completed.
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Same thing has been happening in  Japanese NIkkei and European stocks.
 Gold continues in its up move.
DJI

SPY

IWM

TNA

TZA

GLD

GDX

NUGT

DUST

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Aug 8 Friday 6 :10 AM  Pacific Time

We may have already completed the 5 steps down of the First Leg Down or will do it soon. We will have some kind of rally to the 4th step top  to  may be 16750 in DJI. The rally will be followed by  more selling to new lows.  Gold continues  to rally.

DJI

DJT

IWM

TNA

TZA

GLD

GDX

NUGT

DUST

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July 6 Wednesday 6 :00 AM Pacific Time

As predicted, DJI, SPX and SPY made new lows below last Friday's lows . Decline will continue.  Russell 2000 and NASDAQ did not make new lows but  may make new lows today or tomorrow. After that we  may have short term rally followed by new lows again. European markets  show clearly how it happens. European markets are  approximately 45 days ahead of  US markets.

Gold and Silver are ready to move higher after being down in five steps.

Nikkei also gave a SELL signal in the last two days. FTSE, DAX, CAC and Italian markets continue to make new lows.  Italy has had two quarters of negative growth thus going into recession a second time. Deflation has raised its ugly head throughout Europe. This is not  a good indicator for any growth in the second half for US markets. We cannot remain immune to what is happening around the world. Governments around the world have been feeding manipulated data to the public hoping it will result in growth. It does not work. US dollar is strengthening to new highs and it does not help our exports.People who believe in fundamentals only  will be disappointed. Earnings were  good in the second Quarter but it is meaningless if Technicals start weakening.  It is like looking at the rear view mirror.We have ben warning about this since early July when most of the analysts were bullish.( For more details see our book)

DJI

SPY

NASDAQ

DJT

IWM

TNA

TZA

GLD

GDX

NUGT  Ready to go up

DUST  Ready to Go down to New lows

 Japanese NIKKEI  225

 British FTSE 100

German DAX Hit 10% correction So Far

Italian  FTSE MIB

INDIAN  BSE SENSEX Ready to give SELL signal

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Premarket Update Aug 4  6 :05 AM Pacific Time
 As predicted in our previous posts, DJI, DJT , SPX, SPY have been going down wiping out  most of the gains for this year. Russell 2000 has had the most decline going below Jan 1 , 2014. Third  step down was completed last Friday morning and we have been having a 4th step rally since then. This 4th step up will be followed by 5th step down going below Friday's lows. After that we will have   some stronger rally.
Gold and Silver want to go up  but are having trouble staying up as we may have already started the 5th leg down or we are close to starting soon after one more minor rally.

DJI can go up after it reaches the 200 day moving average.

SPY

IWM Can go to May Lows before a rally can start

TNA

TZA

GLD

GDX

NUGT

DUST

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JULY 31 Wednesday  6:10 AM  PREMARKET DATA

 As predicted several days ago, DJI, DJT  & SPY gave SELL signals in addition to SELL signals for RUSSELL 2000, IWM & TNA  given on July 7 . This is based on our book. Earnings may have been good but they are no more useful  than looking at the rear view mirror.

NASDAQ will give SELL signal today. Even though GDP  for second Quarter was published at 4% gain yesterday  compared to 2.1% (revised) for First Quarter, these numbers are not meaningful for predicting the market.
European markets gave a SEll signal some time back

DJI

DIA  ETF for DJI went below 15 day and 50 Day moving Averages

SPY

IWM

TNA

TZA

GLD

NUGT  SELL signal

DUST   BUY signal Given

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